Encore Bancshares Surge on Takeover Bid

Shares of Encore Bancshares

are seeing much strength during Tuesday's trading session after the company entered into a definitive agreement to be purchased by Cadence Bancorp. Under terms of the definitive agreement, Cadence will pay $20.62 per share, or approximately $250 million for the approximately 12.1 million outstanding shares of Encore, equating to 2.4x price to tangible book value multiple. Certain members of the Board of Directors of Encore have provided proxies in support of the transaction. "This is a very attractive opportunity for our shareholders, customers and bankers," said James S. D'Agostino, Jr., Chairman and CEO of Encore Bancshares "Encore is a tremendous company, and we believe that the team at Cadence will only enhance what we have built." Currently, shares of Encore Bancshares are trading up over 35% at $20.25.